NEW YORK (TheStreet) -- Abbot Laboratories
(ABT) posted mixed results in their 2014 first quarter earnings report released on Wednesday.
Excluding special charges, the healthcare product manufacturer posted a net income of $375 million, or 41 cents per share, for the quarter ending March 31. That beat analysts consensus EPS estimates of 36 cents per share.
However, year over year quarterly revenue fell 2.6% to $5.24 billion from $5.38 billion missing analysts estimates of $5.29 billion.
The company also reaffirmed its guidance range of $2.16 to $2.26 EPS for fiscal year 2014.
- ABT's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 0.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ABT's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for ABBOTT LABORATORIES is rather high; currently it is at 57.82%. Regardless of ABT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.42% trails the industry average.
- In its most recent trading session, ABT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income has significantly decreased by 44.0% when compared to the same quarter one year ago, falling from $1,053.46 million to $589.55 million.
- You can view the full analysis from the report here: ABT Ratings Report
WATCH: More market update videos on TheStreet TV
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV